GOCCs drive surge in non-tax revenue, boosting gov’t programs

By Francis Allan L. Angelo

The Philippine government has garnered PHP 88.6 billion from 47 government-owned or -controlled corporations (GOCCs) as of May 6, 2024, Finance Secretary Ralph G. Recto announced.

The figure represents an elevenfold increase over the PHP 8 billion collected during the same period last year, establishing a robust source of non-tax revenue to fund key initiatives under President Ferdinand R. Marcos, Jr. without resorting to new taxes.

The disclosure came during the celebratory GOCC Day, held at the Philippine International Convention Center (PICC), where President Marcos, alongside Recto and Executive Secretary Lucas Bersamin, recognized top-performing GOCCs for their significant financial contributions and adherence to stringent corporate governance standards.

“These dividends are instrumental in funding the administration’s priority programs aimed at enhancing the welfare of all Filipinos, without placing additional financial burdens on them through new taxes,” Recto explained, emphasizing the role of these dividends in sustaining fiscal health and reducing the need for external borrowing.

This surge in dividends contributed to a total non-tax revenue increase to PHP 206.4 billion at the end of April 2024, marking an 85% rise from the previous year.

The government’s overall revenue also benefited from heightened collections by the Bureau of Internal Revenue, which collected PHP 912.9 billion, up 16.3%, and the Bureau of Customs, which saw a 6.3% increase, totaling PHP 295.2 billion.

Recto lauded the GOCCs for not only meeting but exceeding their remittance obligations, with many increasing their dividend payments from the minimum of 50% to 75%, further accelerating national growth.

The top contributors included the Land Bank of the Philippines, Philippine Deposit Insurance Corporation, and the Bangko Sentral ng Pilipinas, among others.

The finance chief projected that GOCC dividend remittances would reach PHP 100 billion by year’s end.

These funds are slated for extensive infrastructure and health projects, including the construction of farm-to-market roads, new public classrooms, expanded farmland irrigation, and substantial healthcare subsidies for kidney and cancer patients.

Reflecting on the broader impact of these contributions, President Marcos assured that these funds would be reinvested into the economy, supporting growth-inducing activities that generate jobs and improve living standards.

“Let me assure you that they will be carefully spent, plowed back to them through projects and programs that will improve their lives today and create a better tomorrow for our children,” Marcos said, underscoring his commitment to harnessing these dividends for the national good.

Both leaders affirmed their dedication to transparency, accountability, and rigorous corporate governance to continue enhancing the efficiency and integrity of GOCC operations in the Philippines.